Tyco to Buy Broadview Security for $2B

Tyco International agreed to buy Brink's Home Security, now operating as Broadview Security, for about $2 billion, or $42.50 a share.
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Publish date:

Updated from 1:07 a.m. EST

SCHAFFHAUSEN, Switzerland (

TheStreet

) --

Tyco International

(TYC)

agreed to buy

Brink's Home Security

(CFL)

, now operating as

Broadview Security

, for about $2 billion, or $42.50 a share.

Tyco will combine Broadview with its ADT security business, the world's largest electronic security provider.

Shares of Broadview closed Friday at $31.42 and rose as high as $41.59 in premarket trading Tuesday.

The merger will combine Broadview's 1.3 million accounts with 7.4 million accounts of ADT in the North American residential and commercial security industry.

Tyco said it expects the transaction to become accretive to earnings within the first year of combination and will result in operating synergies of about $150 million.

"This transaction provides us the opportunity to further strengthen our position in the residential and commercial security industry, while advancing Tyco's overall strategy to increase its presence in its core security, fire and flow control platforms," said Tyco Chairman and CEO Ed Breen, in a statement.

Under terms of the deal, Broadview shareholders can choose to receive either $42.50 a share in cash or a combination of $12.75 in cash and $29.75 in Tyco shares or Tyco shares equal to $42.50.

While there may be some job reductions, it is too early to quantify them, Tyco spokesman Paul Fitzhenry told

Bloomberg

.

Breen told

Bloomberg

in an interview that Tyco is looking for "a couple" more bolt-on purchases in the $300 million to $500 million range, across its three business lines.

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